Question

Elenas anut bought her a 150$ saving bond when she was born. When elena is 18 years old, the bond will have earned a 106% in interest. How much will the bond be worth when elena is 18 years old

Answer 1

The Amount after 18 years is $66,942,391.5

Explanation:

Given as :

The principal invested in saving bond = p = $150

The Time period for the bond = t = 18 years

The rate of interest applied on bond = 106%

Let The Amount after 18 years = $A

Now, From compound interest

Amount = Principal ×
`(1+(\textrm rate)/(100))^(\textrm time)`

Or, A = p ×
`(1+(\textrm r)/(100))^(\textrm t)`

Or, A = $150 ×
`(1+(\textrm 106)/(100))^(\textrm 18)`

Or, A = $150 ×
`(2.06)^(\textrm 18)`

Or, A = $150 × 446,282.61

∴ A = $66,942,391.5

So,The Amount after 18 years = A = $66,942,391.5

Hence,The Amount after 18 years is $66,942,391.5 Answer